Oser Communications Group

www.kitchenwarenews.com n FEBRUARY 2014 n KITCHENWARE NEWS & HOUSEWARES REVIEW State of the Industry Report Reflects Consumers' Growing Confidence The global housewares market increased retail sales 2.9 percent in 2012 to $314.3 billion, the most recent statistics available, while U.S. housewares expenditures increased 3.3 percent to $69.3 billion, according to the International Housewares Association's 2013 State of the Industry (SOI) Report. Every year since 1996, IHA has provided a detailed look into the housewares industry as a strategic service to its members. This annual recap of the industry, a joint effort of IHA and Raftery Resource Network, Inc., includes a compilation of data from the annual IHA annual membership survey and authoritative sources such as the U.S. government. Other key findings from the 2013 SOI report: Discount stores and supercenters was the leading retail channel for sales in all housewares categories. Non-store retailing represented the second largest share of housewares sales in 2012. E-commerce retail sales continue to post yearly sales gains. When combined, these retail channels – direct to consumer via manufacturer website and catalog/TV and Internet retailers – reached 15 percent in share of total housewares retail sales in 2012 versus 13.1 percent in 2011. The top four housewares categories in terms of sales for 2012 were cook and bakeware (16.7 percent), kitchen tools and accessories (12.4 percent), tabletop (11.8 percent) and kitchen electrics (11.1 percent). These four categories accounted Traeger Pellet Grills Names New CEO Traeger Pellet Grills, a designer, manufacturer and marketer of wood pellet grills, wood pellets, sauces and spices and grilling accessories, has named  Jeremy Andrus as Chief Executive Officer. Andrus, an experienced CEO with a strong track record of successfully growing consumer businesses, will spend his time between Traeger's principle locations in Wilsonville, Ore. and  Springville, Utah. Prior to joining Traeger, Andrus spent eight years at headphone designer, marketer, and distributor Skullcandy, most recently as President and CEO, where he was able to increase annual sales from less than  $1 million  to nearly  $300 million  and establish the company as a preeminent lifestyle brand. GENERAL NEWS 5 for 52 percent of industry sales. The average (mean) size of IHA member companies increased slightly to $21.8 million. Most IHA member companies (90 percent) export products to other countries. Canada, Mexico, Western Europe, Latin America, Australia and Asia are export destinations for at least half of these companies. With the exception of Mexico, exports to those destinations increased. Throughout the report, "SOI Insights" condense macro trends within the industry. One such insight, for instance, says that while inventory turns may be slowing, the data support the argument that inventory levels are being matched to store sales, which indicates less investment buying by retailers. Another Insight: As the U.S. housewares business continues to experience retailer consolidation and Internet sales grow among these companies, housewares companies can expect to have fewer purely "brick and mortar" customers. And, while the slower-paced economy in 2008 and early 2009 helped lower raw materials prices and the mild expansion that followed may have created some optimism about the future of the economy, current sentiment appears to be "wait and see." Predictably, healthcare costs continue to add a double inhibitor to housewares businesses – increased operating costs for manufacturers and decreased consumer spending as more employee wages go toward healthcare costs. Yet, consumers seem to be "loosening their belts" slightly, which could have positive implications for in-home purchases such as housewares. The 56-page report also offers a list of the top 100 domestic housewares retailers by sales and the top 50 Internet properties in the U.S. The 2013 SOI Report is available in the Knowledge Center at www.housewares.org. Non-members can purchase a copy of the report for $500. "I am excited to be joining the team at Traeger.  The company has done an excellent job establishing itself as the leader in the wood pellet grill market.  With its unique product offering and multi-channel sales strategy, there is tremendous potential for Traeger, and I look forward to guiding the company's continued strong growth," said Andrus. In connection with assuming the CEO role, Andrus is making a material co-investment in Traeger and will become a partner with the company's existing shareholders, the Barish family and Trilantic Capital Partners. Andrus joins Traeger from Solamere Capital, where he was an Entrepreneur in Residence based in  Salt Lake City, Utah. Prior to Solamere, Andrus served as the President and Chief Executive Officer of Skullcandy Inc. from 2011 to 2013 after his five year role as President and Chief Operating Officer of the company.  Andrus received his M.B.A. from  Harvard Business School and his B.A. from  Brigham Young University, where he studied international relations.

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